The State of Israel increases enforcement ability against tax evaders

On November 22, 2015 the Israeli Ministry of Finance issued a press release announcing that on November 18, 2015 the Israeli Knesset approved in second and third reading a bill to increase the enforcement ability against tax evaders. According to the press release the bill allows the director of the Israeli Tax Authority to pass information to foreign countries according to an international treaty, for their tax laws enforcement.

The press release furthermore states that the bill promotes the affiliation of Israel to The Multilateral Convention on Mutual Administrative Assistance in Tax Matters, which is a tool for overcoming tax evasion.

Furthermore the press release states a.o. the following: “The law allows transferring data, provided that the tax authority in the foreign country commits to its confidentiality and safekeeping. The data may be used only for tax enforcement uses, and may not be transferred to another country. Furthermore, in cases of national security or public safety, Israel will not transfer the required data to the foreign country. The bill also allows withholding information to a country that doesn’t keep up with international standards. The tax authority will update an Israeli resident in case of a requirement of information concerning him, at least 14 days before transferring the information, unless the requesting country asked for secrecy.”